Technology

Huawei is preparing to appeal Brazil’s possible decision to exclude the company from 5G implementation: O Globo

According to O Globo's sources, the company would have already hired a specialized office with operations in Brasilia to prepare for a litigation scenario

Huawei plans for Brazil
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  • In Sweden, the telecoms’ regulator PTS on Monday halted 5G spectrum auctions after a court suspended parts of its earlier decision;
  • This dispute could be repeated in Brazil, where the Chinese firm has just over 40% share of the 5G’s infrastructure market.

Huawei is preparing to appeal a court decision against Brazil’s possible decision to exclude the Chinese company from 5G network implementation’s auction, reported O Globo‘s sources.

The announcement that the Brazilian government will support the so-called U.S Clean Network proposal to build a global digital alliance that excludes technology that Washington sees as manipulated by China’s government raised concerns at Huawei.

Brazil became the 50th nation to sign on to the initiative, which now includes 170 telephone firms and many of the world’s leading high-tech companies.

READ ALSO: Brazil’s four largest telecom carriers have refused to meet U.S. official who has advocated against Huawei

According to O Globo‘s sources, the company would have already hired a specialized office with operations in Brasilia to prepare for a litigation scenario. Experts fear that there will be a court process of the 5G auction in Brazil, scheduled for next year.

Sweden’s case can repeat in Brazil

In Sweden, the telecoms’ regulator PTS on Monday halted 5G spectrum auctions after a court suspended parts of its earlier decision, in which it followed Britain in banning Huawei equipment from 5G networks, citing national security risks.

The Chinese company had appealed against PTS’ decision to exclude it, saying it wanted a court to check if it had been taken according to the law.

READ ALSO: U.S. offers Brazil telecoms financing to buy 5G equipment from Huawei rivals

“PTS will appeal the administrative court’s decision on inhibition to the next instance,” the regulator said in a statement on Friday. PTS said in Friday’s statement that it would wait for a decision from the administrative court of appeal to decide how to proceed with auctions.

This dispute could be repeated in Brazil, where the Chinese firm has just over 40% share of the 5G’s infrastructure market, points O Globo. Brazil’s top carriers are already testing Huawei equipment for 5G and favor keeping their purchase options open.

‘The Big Brother is watching you’

A U.S. official said on Wednesday that Chinese surveillance of the world through 5G technology was like Big Brother in George Orwell’s novel 1984, as he urged Brazilian companies not to buy equipment from Huawei.

Keith Krach, U.S. under secretary of state for economic growth, energy and the environment, said multinational companies will increasingly stay away from countries that do not have safe civilian networks and risk their data and intellectual property being stolen.

“This story about the Chinese Communist party … it is a real and urgent threat to democracies like ours around the world,” Krach said in a speech on economic security at Brazil’s Getulio Vargas Foundation think tank.

READ ALSO: Huawei CEO says that Brazil ban will make Brazilians pay more for 5G connectivity

“They are trying to export dictator out of the box with their surveillance tools. It is the extension of that Orwellian 1984 Big Brother surveillance,” he said, without providing evidence.

Huawei has repeatedly denied being a security risk. It has said it abides by Brazil’s laws and is available for tests and clarifications that authorities considered necessary.